Advanced Micro Devices
Advanced Micro Devices (AMD) has tacked on significant gains since January, flying in the face of previous statements that desktop and laptop businesses are dead in this era of smartphones and tablets.
Well, at least the share price has flown in the face of this argument. There are undoubtedly pressures on AMD as revenue continues to slump and the company remains unprofitable. In fact, AMD isn’t forecast to break even until at least fiscal 2015 — maybe later.
Also, the stock remains 50% below its 2010 highs so it’s hardly like this run-up has made most shareholders break even.
Still, you can’t fight the tape. Investors are optimistic that AMD is either turning around or at worst oversold. But for my money, I wouldn’t bank on these big gains prefacing continued profits in the months ahead.